The Dow’s activity broke new records in terms of downward movement in 2009. While it wasn’t as dramatic as the Great Depression, the drop happened much more quickly. After recovering from its Great Depression level, the Dow continued to be affected by several recessionary periods and crises leading up to the 2009 downturn. The Dow was volatile in 2015 because it was based on just a few companies. Record-low interest rates allowed firms such as Apple and IBM to borrow billions to buy back shares. These actions artificially raised their earnings per share and the prices of their remaining outstanding stocks (stocks which are still held by shareholders).

1. The global stock market is composed of stock exchanges around the world.
2. In the midst of a recession, the Dow has two milestone days of gains.
3. The selection is not based on strict quantitative criteria but rather on the decisions of the editors of The Wall Street Journal.

Traders were confident in a business-friendly Republican president. The index closed above 23,000 on Oct. 18, 2017; slightly more than a month later, it broke 24,000. The Dow had two streaks lasting more than 10 days, which had not occurred since 1959. This high occurred only 42 trading sessions after closing above 19,000. That is the second-fastest rise in U.S. history (currently, the record is 24 sessions to go from 10,000 to 21,000 in 1999).

At the same time, the strength in the U.S. labor market meant extremely competitive wages driving consumer demand. Both of those factors sent inflation in the U.S. soaring to record levels not seen in over 40 years. The Dow Jones Industrial Average is one of the many gauges of stock market performance. This history of the Dow since the Great Depression demonstrates how stock market fluctuations reflect the natural stages of the business cycle. The Dow’s most volatile period in recent history took place during the Great Recession of 2007–2008.

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Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners as more businesses seek productivity gains through automation. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Stay informed on the most impactful business and financial news with analysis from our team.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are fxprimus broker review not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services. The world’s stock markets serve as a clearinghouse for investors to come together to buy and sell shares, and also serve as a barometer of a society’s fears and hopes.

How Are Companies in the Dow Jones Industrial Average Selected?

21After peaking on February 12, 2020, the Dow Jones rapidly fell into correction later that same month and into bear market territory in the next month amid the COVID-19 pandemic. 13The Dow first traded above 10,000 on Tuesday, March 16, 1999, but dropped back before closing that day. The Dow closed at 9,997.62 on Thursday, March 18, 1999.[18] It would take nearly two weeks to close above 10,000 on Monday, March 29, 1999.

Historical data is inflation-adjusted using the headline CPI and each data point represents the month-end closing value. The current month is updated on an hourly basis with today’s latest value. The current price of the Dow Jones Industrial Average as of April 04, 2024 is 38,596.98. By Jan. 20, it closed at 15,766.74, as investors panicked over plummeting oil prices, the devaluation of the yuan, and turmoil in China’s stock market. Of the 26 records set that year, 17 occurred after the presidential election. The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016.

The Dow sees the end of a long bull market on Jan. 14, 2000, in part due to the strength of the Internet business and the subsequent bursting of the dot-com bubble. It then falls on March 7, 2000, rebounds to 11,124.83 on coinsmart review April 25, and falls again to 9,973.46 by March 14, 2001, beginning the 2001 recession. It then enters a period of volatility and drops to 8,920.70 after markets open following the September 11, 2001 terrorist attacks.

Despite all time highs early in the year, six of the 20 worst-one day point losses for the Dow occurred in 2022. But this robust start was not indicative of extreme volatility the index would face as the year progressed. First, the conflict between Russia and Ukraine saw gas prices spike sharply.

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The Dow also lost 26.5% during the Cuban missile crisis of 1962. Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company lexatrade review investment. 18The Dow first traded above 19,200 during the session on Wednesday, November 30, 2016, then flirted with the same milestone the next day. However, Monday, December 5, 2016 was when the Dow first closed above 19,200.

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The Dow experiences its largest single-day percentage drop of 22.6% on Oct. 19,1987. This so-called Black Monday crash is caused in part by computer trading that forces sell orders when the market trends down. The recession from 1973 to 1975 also led to a falloff for the Dow, which dropped 45% from its 1,051 peak in 1973 to just under 600 in 1974 (about 7,486 and 3,871 points, respectively, inflation-adjusted).

By Aug. 31, the Dow had fallen 13%, from 8,714.64 on Aug. 18 to 7,539.06 on Aug. 31. The Long-Term Capital Management hedge fund almost collapsed, threatening to push its banking investors into bankruptcy. Former Federal Reserve Chairman Alan Greenspan convinced them to support the hedge fund, averting further disaster. The Dow climbed to 9,034.69 on Jan. 2, 2009, before screeching down to 6,594.44 on March 5, 2009. Amid the ebullience, an assessment of the Fed’s next move appeared to be on the back burner.